Philip Morris sweetens buyout bid for Swedish Match to $15.8 billion
2022.10.20 03:18
© Reuters. FILE PHOTO: The holder of the electric tobacco heating system IQOS of cigarette maker Philip Morris Switzerland is displayed after a news conference in Bern, Switzerland November 19, 2019. REUTERS/Arnd Wiegmann
(Reuters) – Marlboro cigarettes-maker Philip Morris International Inc (NYSE:) on Thursday raised its buyout offer for Swedish Match AB, just weeks before a deadline to get enough shareholder support for the $16 billion deal.
Philip Morris raised its bid by more than 9% to 116 Swedish crowns per share, although it said that the offer was its “best and final price”.
Swedish Match did not immediately respond to Reuters’s request for comment on the revised offer.
Philip Morris made an all-cash offer of 106 crowns per share for the Stockholm-based group in May, seeking to expand in the fast-growing market for cigarette alternatives.
John Hempton, co-founder of Sydney-based Bronte Capital who owns 1% of Swedish Match, said he was still not intending to accept the bid, despite the increased offer price
“It is wonderful news. Philip Morris has announced that they are not waiving the 90 percent acceptance condition. The deal will fail and Swedish Match will remain an independent company,” Hempton said.
The company had earlier said that it was expecting EU antitrust approval for its Swedish Match bid in late October.
